Crossroads

[gables]

I only looked for a minute, but isn't contractorcalculator already adding in expenses? I entered 350 p/d and it seemed to assume expenses of 11k per year. Are you therefore deducting expenses twice ?

I'm setting 350/day, inside ir35, 44 weeks, £3000 expenses (it's what's in the box), salary drawn at £10600 (although I'd have thought this doesn't make much difference), ends up with £3636/month

Nixon Williams here work it out at £3895, for 350/dat, 44 weeks, everything else zero

[wantacontract]

contractorcalc and nixon williams have different figures.....I much prefer the nixon william figure!!

As even at 44 weeks, with being inside IR35 at £400 per day, and me submitting £50 per day expenses, I will take home £5153 per month.....

[MyUserName]

contractorcalc and nixon williams have different figures.....I much prefer the nixon william figure!!

As even at 44 weeks, with being inside IR35 at £400 per day, and me submitting £50 per day expenses, I will take home £5153 per month.....

Remember that this is only when you actually have a contract!

More than a few people on here have been blindsided by unexpected bench time or, even worse, found their skills in vastly reduced demand because the market shifted over the course of a year or so.

I am not trying to talk you out of anything, I am just trying to make sure the numbers do not go to your head.

[gables]

contractorcalc and nixon williams have different figures.....I much prefer the nixon william figure!!

As even at 44 weeks, with being inside IR35 at £400 per day, and me submitting £50 per day expenses, I will take home £5153 per month.....

Er, hang on a minute..

you were saying earlier that 400\350 per day wasn't economical and compared it to a £45k permie salary = £2785/month = £33.4k/year. £5153 (use whatever site you like) is £61.8k/year...

[clearedforlanding]

More than a few people on here have been blindsided by unexpected bench time or, even worse, found their skills in vastly reduced demand because the market shifted over the course of a year or so.

Both of these things usually happen in close proximity.

The contracting mindset has to be "where does this contract take me, what will I gain from it as well as money". I have witness countless people shafting themselves by taking say, a 800pd contract in skills with no future over a 500pd that had one.

Contractor often does not imply commercial acumen.

[oliverson]

yup 45k permie = £2785/month = £33.4k/year

but £350/day for 44 weeks = £3637/month = £43.6k/year

So 10k more net

Don't forget your slice of the VAT if you're on the flat rate VAT scheme. That's just over £ 1k based on the above figures.

[wantacontract]

Er, hang on a minute..

you were saying earlier that 400\350 per day wasn't economical and compared it to a £45k permie salary = £2785/month = £33.4k/year. £5153 (use whatever site you like) is £61.8k/year...

this is what I mean, contractorcalc and nixon williams are coming back with two different net figures whilst under ir35. Yes they use different expense and salary figures, but even so, it should result in such a difference in the two figures.

looking at the figure breakdown I think the contractorcalc one is more accurate, and somehow in the nixon william calc something went wrong.

[wantacontract]

Remember that this is only when you actually have a contract!

More than a few people on here have been blindsided by unexpected bench time or, even worse, found their skills in vastly reduced demand because the market shifted over the course of a year or so.

I am not trying to talk you out of anything, I am just trying to make sure the numbers do not go to your head.

yes totally understand that......

I have been lucky over the last 10 years that I have had little bench time, what bench I've had its been by choice, apart from 2 months...so overall from a 10 year run, 2 months of enforced bench time is pretty damn good...but I can definitely see a change coming....

[wantacontract]

right guys, I've realised where I've gone wrong...

I had another look at the detailed breakdown this time rather then just taking the figure of £3442 (derived from £350 day rate) and times that by 10 (10 months, 1 month for holiday and 1 month for looking for a contract)

After looking at the break down, £3442 actually accounts for 44 weeks, which means 8 weeks off per year, plus £6000 in expenses. So provided I only take 4 weeks holiday and have 4 weeks bench time per year, I would be better off by 7k per year.

Permie @ 46k = £34k net
contractor @ £350 per day = £41304. (inside ir35)

so now the question is = does 7k compute against the risk of longer bench time & defacto permie land offer 25 days of holidays.

[wantacontract]

Don't forget your slice of the VAT if you're on the flat rate VAT scheme. That's just over £ 1k based on the above figures.

good call.....